This free Severance Agreement template is a ready-to-use document you can fill in, export and send today. Severance agreement template covering separation date, severance pay, benefits continuation, release of claims, return of property, and confidentiality for departing employees. Use it to agree scope, money and ownership in writing before the work starts, so a disagreement in month six has an answer. Every field is editable, the preview updates as you type, and the finished file downloads as PDF or Word with no watermark and no sign-up.
Who this Severance Agreement template is for
- Freelancers and agencies engaging clients
- Small businesses onboarding vendors or contractors
- Anyone who has been burned by scope creep or a late payment
What's included in this Severance Agreement template
- Company name
- Company address
- Hr representative
- Employee full name
- Employee address
- Employee contact
- Separation date
- Severance pay
- Severance payment terms
- Benefits continuation
- Accrued pto
- Release of claims
- Return of property
- Confidentiality clause
- Revocation period
- Governing law
- Employer signature
- Employee signature
How to use this Severance Agreement template
- 1Name both parties by their full legal entity, not a trading name.
- 2List deliverables as nouns, then list what is explicitly out of scope.
- 3Set the fee, the payment schedule, and what happens when a payment is late.
- 4Say when intellectual property transfers — on final payment, not on delivery.
- 5Both parties sign and date, and each keeps a signed PDF.
Severance Agreement: mistakes to avoid
- The out-of-scope paragraph is the most valuable one in the document.
- Tie your deadlines to the client's inputs: "within 10 business days of receiving brand assets".
- Ask for portfolio rights explicitly. Clients rarely object, and asking later is harder.
- Name a governing jurisdiction. "We'll sort it out" is not a dispute-resolution clause.
Frequently asked questions
Is this Severance Agreement legally binding?
Once both parties sign and there is a clear offer, acceptance and consideration, an agreement of this kind is generally binding. Contract law is jurisdiction-specific, so have your standard version reviewed once by a lawyer where you operate — then reuse it.
Can I edit the clauses?
Yes, and you should. Delete what does not apply rather than trying to remember to add it. Deleting is safer than remembering.
When does the client own the work?
Whenever this document says so — and it should say on receipt of final payment, not on delivery. Until then you grant a licence, you do not assign ownership. That single clause is what lets you stop work if an invoice goes unpaid.
Do I also need a separate NDA?
Not if this agreement already contains a mutual confidentiality clause. A standalone NDA is worth signing earlier — during pitching or due diligence, before any contract exists.